20. A formula often used to find the dollar value of an investment is A = P(1 +r)t, where A is the dollar value after t years, P is the initial amount invested, and r is the annual interest rate expressed as a decimal. According to this formula, which of the following is closest to the dollar value of $1,000 invested for 2 years at a 5% annual interest rate?
Answer and Explanation
Your Answer is
Correct Answer is G
Explanation
Bring in 3 values to get A=1000(1+5%)2=2250. Choose K.